Critical Review: New York REIT (NYRT) & Urstadt Biddle Properties (UBA)

New York REIT (NYSE: NYRT) and Urstadt Biddle Properties (NYSE:UBA) are both small-cap financials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Volatility & Risk

New York REIT has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Valuation and Earnings

This table compares New York REIT and Urstadt Biddle Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New York REIT $160.27 million 2.11 -$82.52 million N/A N/A
Urstadt Biddle Properties $123.56 million 5.66 $52.93 million $0.90 20.12

Urstadt Biddle Properties has lower revenue, but higher earnings than New York REIT.

Institutional & Insider Ownership

69.9% of New York REIT shares are owned by institutional investors. Comparatively, 61.5% of Urstadt Biddle Properties shares are owned by institutional investors. 0.1% of New York REIT shares are owned by company insiders. Comparatively, 20.1% of Urstadt Biddle Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares New York REIT and Urstadt Biddle Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York REIT N/A -1.95% -0.86%
Urstadt Biddle Properties 42.95% 13.19% 5.38%

Analyst Ratings

This is a summary of recent ratings and recommmendations for New York REIT and Urstadt Biddle Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York REIT 0 1 1 0 2.50
Urstadt Biddle Properties 0 3 0 0 2.00

New York REIT currently has a consensus price target of $8.38, indicating a potential upside of 316.67%. Urstadt Biddle Properties has a consensus price target of $21.00, indicating a potential upside of 15.96%. Given New York REIT’s stronger consensus rating and higher possible upside, research analysts clearly believe New York REIT is more favorable than Urstadt Biddle Properties.

Dividends

Urstadt Biddle Properties pays an annual dividend of $1.08 per share and has a dividend yield of 6.0%. New York REIT does not pay a dividend. Urstadt Biddle Properties pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York REIT has raised its dividend for 18 consecutive years and Urstadt Biddle Properties has raised its dividend for 3 consecutive years.

About New York REIT

New York REIT, Inc. is a real estate investment trust. The Company owns a portfolio of commercial real estate. The Company’s business is primarily conducted through New York Recovery Operating Partnership, L.P. As of December 31, 2016, the Company owned 19 properties, which aggregated 3.3 million rentable square feet. The Company holds interests in properties of various types, such as office, retail, hotel, parking and storage. The Company’s properties include Design Center, 416 Washington Street, 50 Varick Street, 1440 Broadway, One Worldwide Plaza, 256 West 38th Street, 229 West 36th Street, 333 West 34th Street, 367-387 Bleecker Street, 33 West 56th Street (garage) and 350 West 42nd Street.

About Urstadt Biddle Properties

Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.

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